Uncertainty Plagues Petroleum Prices – Breaking News
US President Donald Trump’s tariff policies, along with the weakness in global oil demand, are continuing to impact the oil markets. The OPEC+ group of oil exporting countries, which includes OPEC countries as well as some non-OPEC producer countries, have been under pressure to gradually increase production levels in April.
Trump’s decision to raise customs duties on China from 10 percent to 20 percent has had a direct impact on oil prices. Brent Petroleum, which reached $70 for the first time since October 2024 on March 4, closed at $69.32 on March 5. The price of Brent oil saw its lowest point at $68.23 during the week of March 3-10, closing the week at $70.19, marking the lowest weekly closing since November 2021. Similarly, the WTI crude oil also dropped by 4.2 percent to $66.85 during the same period.
The following week, Brent oil continued its decline, closing at $68.98 on March 10, the lowest level since December 2021. Despite this downward trend, prices managed to stay above $70 during the week.
According to Feydoun Barshli, the President of the Vienna Institute of Energy Research, the main factor behind the decrease in oil prices is the global weak demand. Barshli expressed concerns that the stagnation in oil consumption may continue into the period of 2025-2026.
Barshli also pointed out that while the OPEC+ group has generally agreed to production cuts, the increase in production from countries like Norway, Canada, Brazil, and the United States, which are not part of OPEC+, poses a threat to the market share of OPEC+ members.
Barshli warned that if oil prices remain below $70 for an extended period, it could lead to a decrease in investments in new oil discoveries and production. He also cautioned that Trump’s tariff policies could escalate into a global oil and energy battle, potentially leading to economic stagnation.
In conclusion, Barshli stated that he does not foresee a significant increase in oil prices in the near future and emphasized the importance of finding a balance between production levels and market demand to prevent a collapse in the industry.
